There are two taxes proposed at the city council meeting: Policy A and Policy B. If raising taxes through Policy A produces MORE economic surplus than raising taxes through Policy B, then: Select one: a. Policy A is more efficient than Policy B. b. Policy A is more equitable than Policy B. c. this question has no answer because economic surplus doesn't tell us anything about efficiency. d. Policy A is less efficient than Policy B.

Q: Evaluate the following two statements. Do you agree? Why or why not? a. “A tax that has no…

A: Meaning of Tax Imposition:The term tax imposition or the tax hike refers to the situation under…

Q: In this diagram how do  you label the change in consumer surplus (increase or decrease) and the…

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Q: With the tax, the change in economic surplus is A. the new surplus equal to the area under the…

A:

Q: Which of the following statements about corrective taxes is generally NOT true?

A: The correct option is D.

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A: Given  Demand equation  Q=100-6p     ...(1) Supply equation: Q=-2+p          ....(2) Tax =$10 per…

Q: If the government wants to raise tax revenue, which of the following items are good candidates for…

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Q: Suppose that the government imposes a tax on cigarettes. Use the diagram in the photo below to…

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Q: A. What is consumer surplus after the tax?

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Some economists have argued that taxation is one of the causes of economic inefficiency. They claim…

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Q: Consumer and Producer surplus Stax P $500 $200 $120 $X $50 D 80 150 Q Assume an excise tax of $130…

A: The supply would shift after tax by the amount of tax i.e., by 130. Therefore the value of X…

Q: The graph accompanying this question shows a market in which the government has imposed an excise…

A: The demand curve shows an inverse relationship between price and quantity demanded. Demand is a…

Q: government is not able to decide whether it will be consumers or producers will pay a tax.

A: To find : Why government can't decide who will pay tax.

Q: 1. The equilibrium price of juice was initially $1.80 per bottle, and the equilibrium quantity was…

A: here we calculate the tax face by buyer , seller and affect of tax on consumption as follow-

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A: Market equilibrium: At the market equilibrium we have demand equals to supply. Or at market…

Q: When a tax per unit is placed on the buyer of a good: a the equilibrium price falls and the…

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Q: Draw a diagram to show the effect of a tax on producers. Show one demand curve and two supply curves…

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Q: If the government imposes a tax of 8% on luxury cars that the consumer must pay, why does the…

A: The tax is shared by the consumer and producer based on the elasticity of the demand and supply. If…

Q: Draw a diagram to show the effect of a tax on producers. Show one demand curve and two supply curves…

A: The demand and supply curve before tax are given below. The intersection of demand and supply gives…

Q: When a good is taxed, the side of the market with fewer good alternatives cannot easily leave the…

A: The size of the tax burden depends on the availability of substitutes for the good.

Q: Suppose a local government votes to impose an excise tax of $0.90 per bottle on the sales of bottled…

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Q: Suppose a local government votes to impose an excise tax of $1.00 per bottle on the sales of bottled…

A: The demand curve is the downward sloping curve. Supply curve is the upward sloping curve.…

Q: Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the…

A: In the above problem, the tax is imposed on cigarettes will eventually increase the cost of…

Q: The difference between a tax and a subsidy is when the government places a tax on the producers of a…

A: We have to find tax and subsidy .

Q: When the government places a tax on the producer of a good or service both the supply and demand…

A: Option D is correct The supply curve for the good or service shifts to the left.

Q: Subsidies, unlike taxes, tend to increase the quantities of goods and/or services traded and…

A: A subsidy given by the government to individuals or institutions. It is a form of financial support…

Q: For a tax on cigarettes, show (using a graph) the deadweight loss of taxation. Determine the areas…

A:

Q: Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the…

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Q: In a market without taxes, consumer surplus is $100, and producer surplus is $200. After the…

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Q: Suppose that before tax was imposed 400 million gallons of gasoline was supplied at $3.00 per…

A: “Since you have asked multiple questions, we will solve the first question for you. If youwant any…